-China’s overseas investment boom in 2016 saw a total of 170 billion US dollars leaving the country and investing in non-financial sectors. A large chunk of such investments were not related to the core business of the company, and some involved fraud. As a response, the Chinese government has issued new regulations on overseas investment, listing areas and investment behaviors that are restricted or not encouraged. What’s the rationale behind the new regulations?
-On the other side, developed countries were getting “cautious” on incoming investments from emerging markets such as China, in particular the M&A. Why is that?
-There is a widely-held view that outsourcing of manufacturing benefits just the shareholders and the companies who see their labor, raw material and environment costs go down and profits go up. Other stakeholders are losers, including the government suffering tax loss, local communities in decay and residents losing jobs. Is this a valid assertion? How should emerging overseas investors such as China rethink and readjust their overseas strategies?